Author says SB 1350 would spur green hydrogen projects after federal tax-credit cuts

Sen. McNerney presented SB 1350 to the Assembly Appropriations Committee as a measure to stimulate in‑state green hydrogen projects and help California meet its clean‑energy goals. He said the federal government recently canceled tax credits that had supported proposed projects — including, he said, $1,200,000,000 tied to a proposed hydrogen hub called Arches — and argued SB 1350 would incentivize renewable hydrogen production by allowing renewable portfolio standard (RPS) credits when plants use green hydrogen.

Tim Kammer, director of policy and regulatory affairs for the Green Hydrogen Coalition, told the committee SB 1350 would place renewable hydrogen on the same footing as other qualifying renewables in the RPS guidebook, give load‑serving entities another compliance option, and help create near‑term demand that could accelerate conversion of existing equipment. He emphasized the bill does not mandate hydrogen use but provides an additional compliance pathway.

The author described the bill as a tool to preserve jobs — citing a Lancaster project called LMNT that the author said is expected to create about 1,200 union construction jobs — and said aligning incentives quickly is needed so projects can secure expiring federal tax credits. Committee members offered support and the item was reported out on an 'A' roll call.

Next steps: SB 1350 was taken up and is out on a roll call for committee action; if approved in concurrence with other legislative steps it would proceed toward the Assembly calendar.